Skip to comments.Report: HP Moves Part Of Notebook Production From China To Japan
Posted on 06/18/2011 3:57:21 PM PDT by BfloGuy
You dont hear news like this too often these days, but according to Japanese business daily The Nikkei, HP is planning to shift part of its notebook production from China to Japan in the next few months. The Californian company plans to eventually manufacture all computers for sale in Japan in factories in Akishima near Tokyo.
For that, HP plans to hire 50% more workers in Akishima, boosting the number of employees there to 450. According to the Nikkei, labor costs in Japan are about four times higher than in China. But with this move, HP apparently wants to increase efficiency, be closer to the market, stand out with a made-in-Japan moniker, and push down delivery times especially to Japanese business customers.
(Excerpt) Read more at crunchgear.com ...
Ah, but labor costs are just one of many production costs. And there's also the fact that Japan's central bank has virtually eliminated inflation -- the Yen's purchasing power has been stable for years.
This provides a good environment in which to do business and allows consumers to benefit from dropping prices due to productivity improvements.
The conventional wisdom these days is that Japan is in a long, slow decline. The conventional wisdom is wrong. Their GDP may be stagnant, but GDP growth is dependent on an inflating currency.
The Japanese aren't stupid. They continue to produce more goods with fewer people. Capital continues to be invested, living standards are rising and their export machine just keeps cranking.
Don't believe the Keynesian-trained ignoramuses who pontificate about Japan's lost-decades. They don't have a clue what they're talking about.
Japanese consumers enjoy the ability to purchase more each year for the same amount of Yen. This is supposedly a bad thing; I can't, for the life of me, see why.
Good maybe HP quality will go up. I know the last two notebooks I bought from them were junk...
Amazing, isn’t it? Only two months ago, FR’s doomsday chorus all but predicted the end for Japan. Luckily, Japan was having none of it, and got to work instead of wringing their hands and posting pictures of “black swans” and crying “the end is nigh!”
You are correct and people are starting to see that China can’t keep the quality aspect up. Consumers choose not only on price but on quality.
China still means cheap build quality
Japan means excellent build quality
HP should bring home the bacon
USA non-union shop means excellent build quality also, and lower shipping costs for US Customers. Since they are in HOUSTON, they could have build right in their back yard and done very well with Tax and quality.
why don’t they move it to some rural u.s. location?
HP Japan hiring 50% more workers means nothing to Japan's survival.
You may have a point about the fertility rate. But do present trends always predict future trends?
In any case, my point was about productivity and industriousness. The Japanese may need to “get busy” in other ways, too. :-)
The “Made in Japan” label is very powerful here. In some cases, people are willing to pay up to twice to get a Japanese-made product.
While part of the reason is superior workmanship, another reason is simple patriotism and a feeling that Japan has been abused by China in resent years.
Recent... Ugh, no posting before coffee...
My Touchsmart 300 was “ assembled “ in Tokyo , but virtually all the parts were made in China as far as I know . Lots of trouble with it during the first year : had to send it back for repair 3 times ( they would NOT replace it despite major hardware defects ) . I don’t care where they make their computers ; I’d never buy another HP . And I live in Japan !
“why dont they move it to some rural u.s. location?”
I second that motion in a big way.
No,but they are the best predictor.
If we can’t use current trends then there is no point in any kind of speculation.
FR can only discuss the present and the past.
How interesting would that be?
But will they be radioactive?
why dont they move it to some rural u.s. location?
Because we do not demand it.
We should. It is the only way we will bring our jobs back.
Raise cane. And do not make it painless for companies to outsource.
“Free trade” is not our friend.
But the fallacy of predicting future trends based on snapshot trends has been illustrated before. I think it was called the Malthusian catastrophe or something like that. I’ll have to look it up, but the long and short of it is that continued indefinite geometric population growth was as unlikely in the 1800s as would be indefinite geometric population decline now, notwithstanding current trends.
Of course, I could be wrong.
The Data for declining Japanese fertility rates is more than a snapshot. It has been decades. Plus this is not an economic problem or a resource problem. It is a sociological/political one.
Japan is pretty much out of carrots to increase fertility rates.
It needs to use sticks.
That would need a break with its current post-war liberal-democratic traditions.
Of course it could enter a brave new world and the central government can manufacture people in the future I suppose. I would argue that “Japan” would be finished and something new has arisen.
Due to the Obama regime's business hostile policies, Obamacare mandates and union support, no business can possibly create new jobs here at home without suffering for it.
Obama’s administration is already more than half over.
It is time to start planning for when the GOP takes over.
We’ll need jobs.
As someone who translates the internal business reports of various Japanese firms, China is not as great of an investment as people think. My clients are leaving China for Thailand or leaving to central China.
Productivity of all but the most basic materials is low, wages are rising dramatically on the coast though production is mediocre, while the wages of central China are low and productivity is abysmal.
Japanese workers do not work as proxy slaves as the Chinese do. Add to the fact that China is becoming more and more unstable. Korea and Japan are expensive places to put plants, but productivity is way better.
“Good maybe HP quality will go up. I know the last two notebooks I bought from them were junk...”
That’s because they are junk. HP laptops are THE worst in terms of build quality, reliability and longevity. Except for their old Omnibook series, they always have been and still are.
Right now, in the consumer class, I’ve been recommending Dell laptops first and then Toshiba. Essentially the special models made for BestBuy, et. al.
Amongst the business class laptops, the Panasonic Toughbooks are head and shoulders above the best, and Panasonics have ALWAYS been made in Japan, though service and support is all in the good ol’ USA, with all warranties runnning for three years.
Panasonic is also just now releasing a new model, the CF-53, which moves them a little more into the mainstream now in terms of features and weight. Heretofore, the Toughbook line consisted of tank-like models and those little slimmed down skinny jobs that cost a fortune.
Works for me. You would be surpised to know just how many companies are currently doing just that out here in the “boonies”. We have a loyal non-union workforce, and can always use the work.
I am glad to hear another person also say that HP laptops are junk. Their PCs are no better. When people call me to fix their dead technology toys, a lot of it is HP.
You’ve reminded me of changing my tag line,
The Economic Boom Heard Around The World => TEA Party 2012
Japan will be fine.
HP’s consumer line is lower quality, just like Dell/Toshiba/Lenova/etc. Their business-lines as well as their Envy lines are quite good.
the new Envy’s match (in some cases,) the Macbook pro line but you’ll pay for it.
I suspect this move is for those higher end lines.
>.Good maybe HP quality will go up. I know the last two notebooks I bought from them were junk...<
Yup. JUNK. Will NEVER buy Hp ever. Their customer service is the worst, even their tIER 2 CS in Vancouver, canada. (No wonder they riot so much).
If the production costs are higher, they will pass on the “savings” to their customers so their cheapest crappy laptops will probably sell for $500 more. Oh goody. (s/)
The keyboards will glow in the dark. Don’t you like that? I had to pay extra for it last year. Now free.
Great news!! Hope this trend to move away from China-made junk continues!
Because corporations are in business to make money. Taking a hit on higher pay to the Japanese will produce better quality products in the long run (albeit slightly irradiated).
Higher taxes are coming to US businesses and the rule of law has pretty broken down so it is not a climate conducive to business.
I’ve had good luck with HP Desktops. Laptops, not so much.
because HP forgot who they came to the with.
“When people call me to fix their dead technology toys, a lot of it is HP.”
Ditto. And frequently they’re so broken they’re not cost-effective to repair so I have to tell people they’d be better off to buy a new laptop.
Take a look at them moccasins. What kind of skins is them? What's that writing mean? Nikkei...what is that?
China, Japan, and the UK: the United States’ greatest three debt holders, correct?
Or for that matter, look for a nice lady to settle down and get busy with.
Or to help raise any children, too.
How did there ever get to be 100,000,000 Japanese? Someone was doing some fooling around somewhere.
Correction, 127 million.
Isn’t HP now Lenovo...the Chinese company that bought them out?
They bought the PC division of IBM.
There is a reason that HP home stuff is generally a tad lower than most of the other brands.
“There is a reason that HP home stuff is generally a tad lower than most of the other brands.”
OK. I’ll bite. And that reason is?